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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    May 15, 2013
    1:00 - 3:00pm EDT  

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of time, this from the top democrat on the committee ssying he's going to introduce, reintroduce legislation, a federal press shield law to help protect media organizations in the event of federal investigations. it has previously passed congress, and he wants to try to get it through again. melissa, lori? melissa: this was to be about medicare; is that right? it's pretty coincidental and not great for eric holder this is happening a day oar two after we found out about all of these other issues that everyonements to ask him bout. >> right. yeah, this hearing was previously scheduledded, and the attorney general was supposed to go up on a general oversight hearing, if you will, which is common for administration officials to go up and do this, had it not been for the associated press story, the irs story, and, of course, ben -- benghazi as well, in would have been the hearing that wouldn't
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have got coverage. melissa: obviously, we are following closely, expect it to get underway relatively soon, and when that happens, we'll bring it to you live. in the meantime, it is the phone record scandal turning the department of justice on its ear, why government investigators tenant talk with the associated press before secretly grabbing their phone records. attorney general -- oh, go ahead, lori. lori: i'll pick it up here. the attorney general, as you know, rescued himself from the decision, and lawmakers expect answers from this testimony as you can see, waiting for it, and we'll go to it as soon as it begins, but before that, joined by lou dobbs, and it boils down to can you trust the administration, and as far as the ap's concerned, did the administration simply not want a story printed? >> those are wonderful questions, and we hope we have the answers soon. as you suggest, what this has come down to know, and as we looked at the hearing room in which the attorney general will
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shortly appear, outside that hearing room, all throughout capitol hill, over to 1600 pennsylvania avenue, there are the dawning understanding that this is far more than three scandals, three controversies that suddenly emerged. this is a pattern of conduct on the part of this administration. i am not drawing conclusions about where it will end, but i will tell you this, that when you look at the attorney general sit down to make his statement, his opening statement today, this is a man who is standing in contempt of congress. that, that scandal is not resolved. this is a man who has made misstep after misstep, utterly tone deaf politically to the nation. you will hear, unless they change the wording in the opening statement, he'll refer to ordinary citizens, and that is the last thing anyone in this
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administration or this government should ever say because american citizens are not ordinary in any way. we are citizens. we are american citizens. that is the only adjective need be employed. this is an administration that seems to be in the grib of humad utter, woeful exraitions with values and law. >> aggressive, going after six officials for leaking more than any other administration combined, all together, aggressively -- >> ten in the course of history of these prosecutions for -- of officials for leaks. this administration alone, six. it is the opposite of what this president promised, which would be openness and transparency, a high ethical standard. instead, again, the attorney general will be before this committee amongst other things,
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answering questions about the politicalization of the justice department because it functions in many ways and views of many members of that committee as a political arm of the obama administration, and a powerful arm it is. >> so you just touched on the fast and furious investigation which, i think ended because congress wrappedded up the session; correct? what's the likelihood that this press conference could expose the attorney general in some way perhaps become the death nail to his service? >> i don't know that that's a likelihood certainly. i do think that this is a sincere, honest pursuit of answers, of truth. washington, as i said on the broadcast last night, is divided into two champs. they are not democrat and republican. there are those seeking the truth, expecting truth, and those who are shirking from any
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look at the truth to any way they can. this is not an administration that demonstrated the acuity or sensitivity to understand the change in the moment, that is this -- that is this president, but what we are witnessing as this committee moves forward with this attorney general is a president who is being forced to pivot from concern and worry and maneuver for his legacy, and, instead, defend his future. >> these second term scandals, one two term president after another. it's a pattern. >> i covered six presidents, never seen it fail. the second term is marked by, not necessarily disaster, but by hubris, missteps and failure, and political damage. melissa: where does it come from? feeling invincible, feeling like you don't have to run again, or
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you've. in the spotlight for so long, inevidentbly, things catch up. >> there's always the hubris that comes with experience, and that is because you've done it before, you know how to do it before. that's not always proved to be the case in any walk of life, so one always has to tread with a little gin gear in the step. lori: back to the specifics with the ap situation. why didn't the attorney general or those in the department go through the proper meek nations? we had app interesting conversation with judith miller who went through something similar. why do they think that? just go in and take the phone logs? >> well, some of those republicans in that committee room this afternoon say because they comment to intime at a time not -- intimidate not just the associated press, but the media,
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such extraordinary irony here, and, of course, there's the attorney general, in that we got a president who promised open, transparency, higher ethical conduct, and he's been ham fisted in the dealings with a press that does everything it can to kiss his feet as he walking before them. it's amazing to witness. lori: lou, a pleasure. thank you for the thoughts and wisdom. >> my pleasure. lori: the president is calling the latest actions taken by the irs intolerable and unexcusable following the agency targeting conservative groups. rich edson is live from the white house with more, rich? >> more questions and investigations about the issue. the department of justice is open to criminal investigation into this. the treasury inspector general for the matter released a report last evening saying the criteria for conservative groups was
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develope it was inappropriate. it slowed down a number of cop servetive groups, applications for tax exempt status within the internal revenue service that went on for 18 monthss the irs told the inspector general they resolved the issues, and they disagree with the assessment. look at what the president said about this last night in a statement directing secretary lew to hold those responsible for the failures accountable, and to make sure that each of the inspect generals' recommendations are implemented quickly so that such quick never happens again. meanwhile, senate republicans are footing the blame op the administration. >> they tried similar stunts at hhs, at the hcc, the fcc, an administration believes if you disagree with them, they need to shut you up. >> all 45 senate republicans sent a letter to the president, and they say that we demand that your administration comply with all requests related to
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congressional inquiries without delay including making available all irs employees involved in designing and implementing the prohibited political screenings so that the public has a full accounting of these actions. we now have three congressional hearings announced for this one on friday, one next week, and one over innthe senate. back to you. >> rich, you know, we got a lot of breaks news as you imagine, but follow up, if you will, you know, the speak of the house boehner had firey statements saying someone's going to jail, essentially for this. talk about the house of representatives today. >> sure. some people, even in the democratic party, want someone fired over this. the speaker of the house said a short while ago someone's got to go to jail over this, it's a criminal action with a criminal investigation open announced last evening from eric holder. lori: thank you so much, rich edson from the white house. so the eurozone recession seems to be worsening here. kind of pivoting to talk about the global economy.
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cracks appearing in france and germany, nine of the 17 countries are in a recession according to the latest data from europe, and france is the latest edition. returning since 2009, and overall, the economy contracted 0.2% in the first three months of the year, extending the recession to six straight quarters, and germany short of estimates at .1%, and they are to be the strongest economy of the eurozone. well, that slight uptick in growth avoid recession after the previous quarters drop of .7%. although the current recession is not as deep as the one in 2008 and 2009, it is the longest in the eurozone's 14-year history. melissa: stock alert. shares of google trading for the first time ever above 900 dollars. the stock up more than 25% year to date. congratulations to those stockholders, boy. the technology giant kicked up
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the developer conference over an hour ago in san fransisco providing updates on the android operating system, google glass, and there's a music subscription service costing $9.99 a month. different from spotify and pandora, both have free tiers. also making news, google's ceo, he has a rare vocal cord paralysis, but it doesn't affect his day-to-day life. he missed last year's meetings and other key events. paige, himself, says, quote, i'm a better ceo because i choose words more carefully. good way to put it. absolutely. that's been a real story everyone is focused on, etches, obviously, what happened with steve jobs and the way a lot of people, you know, originally tried to see what was going on with him. a lot of people wondered. lori: a lot at the investor meeting, he didn't show up, so now we have the answers.
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melissa: we'll see. all right. bad to worse for bloomberg news and editor matt after the news service admits it snooped on clients, liz investigates that coming up. lori: the stock market rises today, off the best levels, we see the metals market largely down with gold off 2% or $30 an ounce. silver down. copper is also slightly lower today. third straight session decline for gold today, by the way. we're back after this. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create t future... by clinging to the past.
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and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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>> eight stocks down on the dow
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jones industrial average. the heat chart there as we do every 15 minutes, we update you on the markets. the dow, as an index itself, up 55 appointments, off the best levels of the session, annie coal on the floor of the new york stock exchange. why are they shaking off the gapes? what was the economic picture this morning? >> we had a mixed bag for economic news we got in. the manufacturing numbers, lori, a little bit of 5 disappointment, but the momentum of the market comets upside. the dow jones broke through 15300, new record dow on the high and s&p for that matter, all-time record highs, the dow names hitting 52-week highs, and worth noting, things like 3m, walmart, boeing, bank of america, home depot, johnson & johnson, and coke coca-cola, 52-week highs and celebrating if you're a bull on wall street as the major market averages move to the upside on the same day
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the dollar is to the upside, and the vix, the fear invex has the up arrow. there was a day where we had the inverse relationship, the vix up, markets down, or the other way around, and in this case, once again, we are seeing the vix higher and markets higher. that's happened about 25% this year in 2013, and that's not too often. i have not seen that since way back in 1996, a little up usual trend this year. back to you. >> thank you for pointing that >> bad to worse for bloomberg news today in hot water as china's central bank is looking into potential confidentiality issues with the terminal snooping scandal. with more, here's elizabeth on the bottom line. liz, the pile-on continues. yesterday, the bank of england, now china? >> that's right. good to be with you, and people's bank of china, sources close to the matter, they are not happy, and, basically, what's happening with the people's bank of china, concerned about information that gets out into the market that
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affects the 3.4 trillion dollar reserve stockpile over there, they don't have any information out there that could be in any direction, and they are on a growing list of central bankers around the world concerned about bloomberg news reporters snooping on client usage of the terminals. i reported on air that individual stocks data has not been snoopedded on or bonds individual data not snooped on, but information about what tuckses are looked at are accessible. there's a serious backlash on wall street growing against bloomberg news because of the snooping. traders tell fox business they don't want to feel like they pay 20 grand a year and snoop on by bloomberg news reporters. the list of the central bankers worried here. rightfully point out the bank of england put out the activity is rep henceble. the list out saying they are concerned, jpmorgan chase is
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saying they are in serious dialogue with bloomberg over the snooping allegations. let's get to what bloomberg is telling fox business, we are in a, quote, productive dialogue with clients, but tell you something, this story is not letting up. the traders on wall street told fox business they don't like the arrogant, quote, arrogant out of touch culture growing at the top of bloomberg's news towards the clients of the terminals, that bloomberg business is built around the sale of the terminals. the news division is attached to it. they don't like the way they are treated at all. this is a growing story. we are getting a lot of complaints coming in from wall street to fox business about this. we'll stay on the developing story for you guys. back to you. >> absolutely, huge talk, thank you so much. we are watching the markets right now. dow up 50, the s&p 500 hitting the fourth consecutive high here, 10 out of the last 11 sessions. i mean, the market is on fire. it's own animal working in a
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vacuum, and you could argue with a lackluster economy, new scandals brewing from washington, but the economy is just poking along. >> we'll be right back.
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>> at 24 minutes past the hour, this is your fox news minute. accused cleveland kidnapper ariel castro pleads not guilty to all charges according to the attorney who says castro is on suicide watch in jail. 52-year-old castro is facing kidnapping and rape charges in the alleged abduction of three women. prosecutors say castro kept the women captive in his cleveland home for up to a decade. o.j. simpson has just finished testifying in a las vegas courtroom looking for a new trial. in his 2008 armed robbery conviction alleging his attorney never told him back then a plea deal was on the table. in moscow, russian state tv aired footage claiming another american spy expelled earlier
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this year. earlier, russia filed a protest with the u.s. ambassador over an embassy official russia says is a spy for the cia. american diplomat was caught wearing a blond wig detain by russian security forces, and he's been ordered to leave the country. those are your headlines. back to lori and melissa. melissa: thanks so much. time to make money with charles payne following up on stock with some refreshing profits, a victory lap here, charles. >> you know, guys, we had fun talking about soda stream. you know, i must have discussed this with you five or six times, but it's up so much in the last week, last week, had pressure, last wednesday, said hold it. one of the reasons to hold it is the analysts. investors should know stocks in the portfolio, when they have analysts because they are monstrous. melissa: always to the upside? >> for now, could be a time they
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crash, but so far like today, for instance, sun power. the ceo on the last hour, you know, speaking with cheryl, and it's a stock i follow closely, top 10% gainers, anlyst day today today. it's happened more over the years. since the privileges that wall street used to have with the direct phone calls, some of that is illegal and actually enforced. i think they save them up for the analyst days and conferences. melissa: interesting. >> by the way, another thing to do is to look at the volume, watch the volume and the street. for instance, with soda, normally trades 900,000 shares a day. we have a chart of the volume from last week. every single day was significantly more than the average daily volume, and after wednesday, a dip, the stock came higher. i felt we had it, but we don't. look at it, 2 million share dates, and the stock was under accumulation and moving higher. to me, here we go, look at this,
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somebody knew something or felt something, know what i mean? the stock that trades 900,000 shares to trade 3 million, 2 million, 2.5 million, those volumes, after the dip may 78th, every day it went higher and higher. again, if i'm in the stock, you know, maybe that gives me confidence to buy. if i'm looking for a trade, those are devices. lori: the headliner stocks, but what's the possibility that just because the analyst day is happening, it's just getting more press and attention and that drives the volume and buy in, has nothinged to do with the fundmentals. >> well, it does, a, that's right, if you make money in a trade, it doesn't matter, but -- lori: if it winds down, i don't want to be left behind. >> also, they are saving up, good news for that. in other words -- lori: okay. >> the ceo might have. eager to tell the guy -- melissa: can't do that anymore. >> you save it up, analyst day, everyone's there, guys, we'll do
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better than we said, the volumes up and margins up, and the stock explodes. melissa: great lesson, charles. >> if you have the portfolio, care about the money, mark every stock for the portfolio and get the animallest meeting. >> soccer practice, analyst days. >> exactly, see you later. melissa: off session highs, the senior equity strategist is coming up next. -ori: who is up and down on the dow? the dow up now just 47 points. it was much higher just five minutes ago. we'll find out what's going on with scott after this. ♪
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where attorney general eric holder is now beginning the question an answer session. let's listen in. >> so adopt procedures for handling hits in relevant databases and making sure that the information between agencies is improved. >> we certainly want to work with you in that regard. there is an ongoing inspector general investigation as you know as to how information was or was not shared in the context that you have described. i think generally the fbi did a very good job in acquiring information to the extent that it could. i'm not at all certain that all of the responses, or all the requests, that were made to a foreign country by the fbi were replied to in an adequate manner and i think that is at least one of the problems we have but this is a matter that is ongoing by the igs. >> in 2010, and this relates to the aftermath of the arrest of dzhokhar tsarnaev, in 2010, you indicated strong support for modifying
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criminal rules to insure investigators could obtain critical intelligence from terrorism suspects. specifically you said in 2010, we're now dealing with international terrorists and i think we have to think about perhaps modifying the rules that interrogators have in somehow coming up with something that is flexible and more consistent with the threat we now face. can you articulate how the department would propose fixing the relevant rules and would you be willing to work with members of the committee to insure our criminal rules are up to the task of handling terrorism questions particularly this issue of how long the fbi or other law enforcement can question somebody about imminent threats? there is a supreme court case recognizing that but it collides with another supreme court case saying you have to be presented within 48 hours and, obviously that caused some consternation about the completion of the questioning by the fbi about future events, other conspirators and the location of bombs and other equipment related to this terrorist attack?
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>> yeah. i think you're right, mr. chairman. there is a tension between the public safety exception as defined in the quarles case and rule 5, the rules of criminal procedure. there was a proposal that we floated out there that i talked about. what i would prefer to do would be to work with members of congress who are interested perhaps in looking at the world as we see it now. the quarles case dealt with somebody who was asked, where's the gun? the reality is as we deal with terror suspects there are much more broad questions that we need to ask much more detailed information we need to know. who ales else was involved in this matter? are there other explosive devices we need to know about? are there other threats that will happen not only today but perhaps in the next two or three days? so it seems to me that the need for an extensive quarles public safety exception period would be
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appropriate. i think requires interaction between legislative and executive branches to come up with something that would pass constitutional muster. >> it was reported by the justice department that the obtained two months of telephone records of 20 reporters and editors with the associated press including both work and personal phone lines. there has been a lot criticism raised about the scope of this investigation including why the department needed a subpoena records for 20 people over a lengthy two-month period. why was such a broad scope approved? >> yeah. i mean there has been a lot of criticism. in fact the head of the rnc called for my resignation in spite of the fact i was not the person that was involved in that decision. but be that as it may, i was recused in that matter, as i described i guess in a press conference that i held yesterday, the decision to issue this subpoena was made by the people who are presently involved in the case. the matter is being
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supervised by the deputy attorney generaa. i am not familiar with the reasons why the subpoena was kroubted in the way that it was because i'm simply not a part of the case. >> it is my understanding that one of the requirements before compelling process from a media outlet is to give the outlet notice. do you know why that was not done? >> there are exceptions to that rule. i do not know however with regard to this particular case why that was or was not done. i simply don't have a factual basis to answer that question. >> and it also has been reported that the associated press refrained from release thgs story for a week until the department confirmed that doing so would not jeopardize national security interests. that indicates that the ap was amenable to working with you on this matter. if that is the case, why was it necessary to subpoena the telephhne records? did you see the ap's assistance in the first place? and if not why not? >> again, mr. chairman, i
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don't know what happened there about with the interaction between the ap and the justice department. i was recused from the case. >> i take it that you or others in the justice department will be forthcoming with those answers to those questions as you explore why this was handled, what appears to be contrary to the law and standard procedure? >> well, again, there are exceptions to some of the rules that you pointed out and i have faith in the people who actually were responsible for this case, that they were aware of the rules and that they followed them but i don't have a factual basis to answer the questions that you have asked because i was recused. i just, i don't know what has happened in this matter. >> thank you very much. my time is expired and i now recognize the gentleman from michigan, mr. conyers, for five minutes. >> thank you, mr. chairman. i note that some of our
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members have been outspoken in opposition to the free flow of information act in the past and have commented publicly about their outrage over the associated press subpoenas. but now i am very delighted that to learn that many have changed their attitude on this and i am particularly glad to welcome the support of chairman darrell issa as we move forward with this legislation. mr. attorney general, there has been criticism about tom perez as attorney, assistant attorney general.
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and that he may have mismanaged employees at the civil rights division in the department of justice. are you able to comment on mr. perez's track record as manager of the division and and allegations that he politicized enforcement of civil rights laws? >> yeah. i think that tom perez has been an outstanding assistant attorney general for the civil rights division. i think he will be a great secretary of labor. there have been reports done that looked at the condition of the civil rights division, the inspector general, has spent two years looking at the voting section. there have been, there is a joint report by opr as well as office of professional responsibility, as well as the inspector general i guess. that was issued n 2008. and i think those findings are really important. found that the enforcement of voting rights laws during
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this administration was not based on improper racial or political considerations. found that the hiring practices were not politically motivated. found there was no basis to believe that the voting section politicizes its foi yaw responses. there have been -- foia responses. there are people in the voting section have not gotten along with each other. the majority with in the prior administration which are not good examples of how doj employees are supposed to work with one another but i think if you look at tom perez's record, record number of cases brought against police departments that have acted inappropriate, record amounts of money recovered in discrimination suits, record numbers of voting rights cases filed, he has done what we expect of a person who had the civil rights division which think is the conscience of the justice department. he has done an outstanding job and deserves to be confirmed as secretary of labor.
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lori: okay, you're listening live to attorney general eric holder taking questions and responding to those questions from the house judiciary committee. we did hear him being inquired about his relationship or his knowing of the ap reporters and the subpoena there and he basically says he didn't know anything about the inner action between the doj and the ap. so no accountability there. melissa: interesting in itself. you have to wonder if you're a defense attorney, that makes sense. if you're someone trying to win back public trust, continuing to distance yourself in face of every crisis may not be the best strategy. lori: how many times did he
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shrugging off disappointing economic data here and hitting all-time highs again. where are the risks? will we ever see a pullback? joining us with his take, scott wren, senior equity strategist for wells fargo. thanks for joining us. thanks for being with us. what is your take on the health of the market and where it can go from here? >> lori, another day and record high for the indices. the momentum clearly is to the upside and it's tough as an equity strategist to try to draw clients, to get out of the way of the freight train. what you hope that clients are on board. certainly have been encouraging them to be on board. so i think what what is likely to happen and the market is above the top end of our target rates for year-end. we thought it would trade above there. i think, you know, for us the thing is, when is this thing going to run out of
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steam? we have some conviction. we think the market will end the year at the 1575 to 1625 range, just a touch below where we are now. so what we're trying to do is figure out where are we going to take a little money off the table basically and i think it's not here. it's going to be a little higher than that here but to be honest i'm not exactly sure where because we have clearly picked up a little momentum here over the last few days. melissa: it is may 15th. minute middle of the month. roger ailes birthday. happy birthday, boss. we're halfway through of sell in may and go away and do you think that will come true for the first time in four years? >> sell in may and go away statistically on average the way to go. i don't think it will happen this year. so i think that the market, while we may sell off here a little bit, i think the market is still going to stay bid. i don't think people should
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be raising a lot of cash in their accounts because i think any pullbacks are going to be shallow and i think over the next 12 to 24 months the market is going to be higher. so any pullbacks certainly an opportunity, even if the market finishes a little lower than here for the year. lori: okay. >> the valuations are not expensive here. lori: only have 20 seconds, scott. real quickly, we are watching today the stock market evaporate. lots of news eminating from washington literally speak. any connection there at all? >> i don't think so. i think that there could be some revelations but, any of these pullbacks that are opportunities by cyclical sectors, consumer discretionary, materials, technology, those are all relative laggards. that's where you want to be over the next 12 months. lori: scott wren, thanks as always. >> thanks, guys. melissa: we'll be back after a quick break. market up 42. we know a place where tossing and turning have
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and made changes to existing aircraft orders as well. investors will watch what stock moves warren buffett has made when berkshire files the quarterly update on the u.s. stock portfolio. the filing is expected today to show which stocks berkshire held at the end of march. berkshire hathaway has $49 billion in cash on hand and owns more than 80 companies. that is the latest from fox business, giving you the power to prosper
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lori: get this. banks are now loosening financial rirps on real estate buyers. with 3% down payments in south florida, traditional buyers are back. fox news phil keating is live in miami to tell us more about the trend. hey, phil. >> hi, lori, for the first time really since the 2008 global meltdown, traditional american buyers can again start to purchase a home or condo without needing a
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substantially large down payment which of course a lot of middle america does not have. for the past four or five years banks and lenders have been quite strict in requiring 20%, even 30% down to buy a home or condo and a lot of americans simply don't have that money. that is 60 grand and upwards for a $300,000 property. but in a big step, banks and lenders are loosening up, requiring, five, 4, and even 3% down. enabling troy simmons and others to buy one bedroom condos in midtown miami. >> whenever you get into a property if it wasn't for the 3% down. and, take it as a whole, if we would have saved our money, they would have taken us another year-and-a-half to actually save that amount of money to get into a place. >> now recall 10 years ago before the recession you could buy a house with very little, sometimes even no money down. those days of course ended. the 2005 had the high with
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nearly $5.3 trillion lent in residential lending but then it plummeted down after the recession. but of course it is starting to tick up. according to the mortgage bankers association last year, residential lending increased 7%. this year on track for 12%. back to you. lori: thanks for the trip down memory lane, phil. phil keating in miami. >> those were the days. melissa: a day for the oil market. we're heading straight to the pits of the cme. that is coming up next. lori: let's look at some of the winners on the nasdaq for you as we head to break you make a great team. it's been that way since e day you met. but your erectile dyunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytim the moment's right. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet appred to treat ed and symptoms of bph like needing to go frequently or urgently.
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melissa: crude near the flat line after some wild swings earlier in the session following the weekly
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inventory report. let's get to fox business contributor phil flynn of the price futures group in the trading pits of the cme. tell me what is going on with the trade right now. >> remember that old adage, a rising stock market raisings all barrels? that is exactly what it is. if you look at inventory numbers this morning we should be bearish. yes we had a surprise dru dawn in crude, but now where it counted in cushing, oklahoma, melissa. melissa: gas extending gains for the third straight day. is that because of the warm weather. >> warm weather cold weather, take your pick. it is building a nice base after the 40 cent correction right around four bucks here. melissa: what about gold extending losses for a fifth straight session. is there a fix in the future? >> i think it could be. is there a 6th, another day rally in the s&p? because right now people are just selling gold to get long s&p. s&p right now is the hot
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trade. dow jones average, until we see a break in the stock market you will have to stay away from the gold, melissa. melissa: yeah. i wonder where the support is now that we've broken through 1400. phil flynn, that is all the time we've got. thank you so much. >> thank you. bye-bye. lori: u.s. airlines raking in some serious cash last year. get this, more than 3 billion in fees for checked bags. 3 billion in checked bags fees. that is almost outrageous. more than 2.5 billion of fees associated with changing your reservation. that is a hassle. they started raising these in 2008 to combat rising fuel costs. all of them are in the green with continental and delta both hitting a 52-week high. melissa: yeah. lori: much more ahead on google's new music service. the stock hit a all-time high today. tracy byrnes, ashley webster heading on in to the next hour of "markets now", don't miss it. thank you orville and wilbur...
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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. two white house scandals taking the spotlight on capitol hill. attorney general eric holder facing questions on the irs's secret targeting of conservatives and his department's secret probe into reporter phone records. we'll have new details ahead. tracy: through all of that stocks pushing even higher yet again. the dow is up about 30 points right now, off session highs but still aiming for its 20th record close this year. we're going to tell you the biggest movers. plus we'll look just how high this market can keep going. ashley: and a banner day for google. the stock hitting 900 bucks a share for the first time ever. and by the way, its new music service expected to dominate google's developers conference which is now underway. one analyst will break it down and tell us what it all means for the tech giant's future. that is straight ahead. tracy: wow! but it is top of the hour. time for stocks.
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nicole petallides on the floor of the new york stock exchange. nicole, the market keeps going. >> the market just won't quit. i was talking with john corpina of meridian equity partners before the bell. what do you think about the market and momentum remains to the upside? he agreed wholeheartedly that the risk on trade is here and nobody will short the environment. we've seen record day after record day. s&p 500 trading a as high as 1561. the dow jones industrials breaking through 15,300. let's look at names that have been on the move hitting new 52-week highs on the dow jones industrials. ten of 30 names, including jpmorgan, american express, bank of america, boeing, coca-cola, wal-mart, home depot, johnson & johnson, 3m and disney of the those are the dow components hitting 52-week highs and you have a slew more that continue to break some new records. it is a day on wall street where we continue to do very well despite some tough
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economic news this morning. ashley, tracy, back to you. tracy: despite everything that is going on in d.c. thanks, nicole. ashley: attorney general holder taking questions on capitol hill right now on the justice department's secret tracking of ap phone records and more. peter barnes live in washington, d.c. with the late e. peter. >> well, ashley, that's right. this hear something getting a little bit bumpy for the attorney general over this subpoena of the phone records from the associated press last year. those records are evidence of in a criminal investigation who may have leaked information to the ap about a story in may last year about a failed terrorist plot. the ap says there is no justification for the broad subpoena of its records for 20 ap telephone lines. members of the committee want to know why the justice department felt it needed to do this but we also heard the attorney general say once again that he recused himself from this because he had been interviewed about it and felt there was a conflict of interest. so he turned it over to his
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deputy, james cole and some members of the committee this morning were not happy with some of the answers they got from the attorney general on all of this. take a listen. >> why weren't there negotiations? >> that i don't know. >> there doesn't seem to be any acceptance of responsibility in the justice department for things that have gone wrong. now, may i suggest that you and maybe mr. cole and a few other people go to the truman library and take a picture of the thing he had on his desk, that said the buck stops here? because we don't know where the buck stops. and i think to do adequate oversight we better find out and we better find out how happened. >> and it's not just republicans. some democrats are criticizing the attorney general as well. the ranking member, the top democrat on the committee, saying that he was deeply troubled by these reports about the associated press investigation. ashley, back to you. ashley: very good indeed.
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peter barnes, thank you so much. tracy: all right, now onto the other big story. new developments in the irs targeting of conservative groups. president obama is expected to meet with treasury officials on that matter today. rich edson is live from the white house with the latest. hey, rich. >> the white house says the treasury secretary tim geithner among other -- jack lew, will be here from the white house that steps should happen at the internal revenue service after the inspector general report was issued last night, basically saying they developed the criteria, these red flags for conservative organizations applying for tax-exempt status. they used these criteria for a good part of the 18 months it slowed down the applications. the inpick tore general's report didn't exactly point out who was responsible for developing these criteria. that is why so many investigations are ongoing, criminal with the department of justice and a number of others going on in congress. the white house talking a bit about this after the president issued the statement last night though
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they offered few specifics what the president actually wants to see happen at the irs. >> he wants to see that, what, that the actions taken as revealed by the treasury report that are inappropriate, are met with consequences. >> my question isn't about who is going to resign. my question is, who is going to jail over this scandal? >> so now it's up for more hearings. on friday the house ways and means committee hosts a hearing. next week it is the house committee on oversight and government reform and the senate finance committee will be holding its hearing what exactly happened at irs. back to you. tracy: still an unanswered question. rich edson, thank you very much. ashley: well, for more on both the irs and ap scandals and what it means for president obama's second term agenda we're joined by fox news political analyst juan williams. juan, thank you as always for joining us. look, i mean how would you
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describe the president's react so far? to mean he seems to be a leader on the sidelines. i really didn't know anything about the associated press monitoring. i didn't know anything about the irs. he is giving the impression of a administration out of control, using its power in an abusive manner, yet he is trying to distance himself from all of the scandal but it just makes him appear to be a leader who is frankly a little clueless? >> i think that there's a clear sense that he is on the sidelines here. i guess i differ with your description of him involved with a administration that is abusive of power. the question is whether or not there is any concrete evidence of abuse of power as opposed to simple, you know, bad conduct by some people lower down. that is what you're hearing from the white house is so far, that irs officials in cincinnati, some here in d.c. but not at any direct, no the in any way directly linked to the white house or even to treasury, which
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oversees irs. tracy: yeah, but it is the guy at the top, right, juan, that takes the bullet at end of the day so to speak. this champion of civil liberties that president obama is supposed to be, hard to kind of trust anything now, right? >> well, you know, i am struggling with this, i'll tell you as i'm talking to you because the fact is that you have a situation where all of us, as americans would want the country protected against the kind of airplane explosion al qaeda had in mind in the ap story and the leaks, republicans and democrats were condemning leaks and that the administration needed to be more aggressive. we certainly saw that toward the end of the bush years and it has been picked up fairly well by the obama folks. but as a reporter talking to you, let me just say, it is chilling that our sources all of sudden feel if they're going to go to jail for simply telling us what is going on in our own government. now that is clearly crazy to me. ashley: juan, john boehner
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in his speech today saying look, i don't know what is going to happen. i want to know who will end up in jail. do you really that's going to happen? probably not but what about the remedy here? what are the repercussions? could there be someone in a high-ranking position that will get the boot? >> sure. i think, you know, when you look at it, you have to look at it from a political crisis management perspective and firing people typically is the bloodletting required in this tribe we call this washington. that looks to me like something that is inevitable. the question who is it? and right now republicans are pressing for the attorney general's scalp, eric holder, but i suspect that they're also going to go after the acting head of irs and then lower down, people who were in charge of this program, that instituted this watch for tea party patriot and the like throughout the government. it looks to me like we're headed in that direction. tracy: you know there is a
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lot of calls now maybe to stop funding to the irs. everyone at this point well aware that irs is going to be in charge of health care coming up down the pike, right? they're, you're going to have to report your health care to the irs. if the funding is stopped to the irs, does that kind of put obamacare as a whole basically back on the table? or off the table, i should say? >> no. i think, you know, it is pretty transparent here that people who don't like obamacare are trying to use the irs scandal to undermine enactment of obamacare but it is just not real. there was an editorial this morning in "the wall street journal", making the case that why would we give more authority to the irs, given that they apparently have abused that authority in terms of this increased scrutiny of conservative groups? but the question that's still on the table, tracy, so who would do it? tracy: yeah. >> we all know we report for social security, medicare, medicaid, veterans benefits,
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disability, all the rest. somebody will have to do it and there is no way in which you could envision at this point with obama in the white house and democrats in control of the senate that obamacare is going to be repealed. ashley: very quickly, juan. i guess it is not a you are is prize but he doesn't have, the president that is, doesn't have the best relationship with house democrats. no one is really rushing to his defense. are you struck by that? >> i am. i think what you see even from senate majority leader harry reid is condemnation in terms of both the ap scandal and, i think it is telling. you know what's been going on with the ir. so you see democrats here in a sense kind of, you know, we started this conversation talking about how president seemed to be on the sideline. house democrats are moving away from him even as he is stand on the sideline. they don't want anything to do with two of these big issues, the civil liberties issue, in terms of ap, the
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reporters, and with the irs scandal. so that is really troubling for a president who is trying to get such an aggrrssive agenda through the congress. he needs those democrats to be clear, that they are with him. and with the midterm elections approaching, it looks like they have decided in many cases as to their advantage to stand apart from president obama. ashley: interesting times. one williams, thank you so much for joining us. we appreciate it. >> my pleasure. good to be with you, guys. ashley: all right, so much more to come this hour. google turning heads with its new music service and reported overhaul of google maps. plus the stock, oh, by the way hitting 900 bucks a share. the latest ahead. tracy: billionaire investor carl icahn just made another billion this time on netflix stock. you will not believe how quickly he did it. we'll have details coming up. as we head out to break, the market is up, dow up 32 points. oil down slightly at $94.08 a barrel. we'll be right back. (announcerat scottrade, our clients trade and invest
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tracy: that time of day again to make some money. charles payne is here this hour. he is looking to add some high performance tech profits to your portfolio. that always sounds nice. >> real high performance like high performance computing. you remember cray? i know ashley remembers cray computing. ashley: i was there when they were making it. no, i wasn't. >> super computers, like huge, super-duper fast computers. i did this stock with stuart like in january. it was a monster. went up like 40% and just got hammered about two or three weeks ago on earnings. the earnings were way short i mean in every way. earnings were down, gross margin was down and management said they were sticking to their guidance. if in fact they're right and second half of the year, you can see it there, went from like 16, 23, now it is down to 17. tracy: but why? >> the earnings report was,
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it was horrendous. but again, management is saying they will hang in there. i got to tell you, these guys have these super computers. the last one they put out, the titan, in november, reclaimed the title fastest computer in the world. 17.9 pedi flops. do you know what that is? tracy: no. ashley: sound like a bird. >> sounds like when i dive in a pool. but it is quad drill i don't know of calculations per second. ashley: god. >> yeah. ashley: doesn't trade on the stock exchange. >> one of those things you would buy it for, for the super-duper fast computer to get ahead of everybody else's trade. they have pretty big contracts. some other cool things you can use this stuff for, earthquakes, predicting earthquakes. what they call folding proteins. testing nuclear weapons, forecasting hurricanes and also the recreation of the big bang. they think they will ultimately be able to do it with the super computers. that is if you believe in that kind of stuff. ashley: but can it make a
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cup of coffee, that is the big question? >> i think so. if it breaks out to 18 it will start to make a big move up, and if management is right and big contracts come through, remember these things cost half a million or more. the titan costs 100 million put together then this stock will make a nice rebound. ashley: name in computing. >> their best computer the titan. what else could you name it. ashley: yeah. tracy: charles payne, good stuff. not typical uber-volatile but we love it. >> not typical but it is one of these, you have to have a little bit of faith. tracy: i get it. >> okay. ashley: see you later, charles. a quarter past or a little after, time to check the markets. nicole petallides on the floor of the nyse. big day for retail stocks no doubt. >> it certainly is and let's kick it off by taking a close look at macy's. those of you who shop at bloomingdale's, bloomingdale's is under the macy's umbrella. there is good news for the profit which jumped 20%,
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same-store sales on the rise and raised their dividend 25% and added to the bye bark. good news there for -- buyback. good news for macy's. this is other names with record highs that includes macy's. they're hitting all-time highs today. consumers continue to spend in names like nordstrom, home depot, carmax, tjx, the paint of tjx and marshals. lowers, o'reilly -- lowe's and o'reilly's and urban outfitters. the majority of these i ran through them, they all cained about 20 or 30% each one year-to-date. so a lot of great performers there. back to you. ashley:. ashley: nicole, thank you very much. we'll be back with you in about 15 minutes. tracy: coming up netflix shares more than tripling since august. billionaire investor carl icahn was along for the ride, lucky dog. gerri willis is on the story next. ashley: first, how is the
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dollar moving on a day the market cost continue to move higher. it is a mixed picture. british pound is up a little. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros wi dedicated chats and daily live webinars. and trade with papermoney to test-drive t market. ♪ all on thinkorswim. from td ameritrade.
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hour i'm arthel neville with your fox muse minute. detroit has hired a new police chief, its fifth top cop in five years. james craig is moving from his job as cincinnati police chief to return to detroit where he began his career as a police officer in 1977. for the fifth year in a row, "forbes" magazine called detroit the most dangerous city in america. accused cleveland kidnapper ariel castro will plead not guilty to all charges. that is according to his attorney who says castro is on suicide watch in jail. the 52-year-old castro is facing kidnapping and rape charges in the alleged abduction of three women. prosecutors say he kept the women captive up to a decade. o.j. simpson has finished testifying in a las vegas courtroom. he is looking for a new trial in his 2008 armed robbery conviction alleging his attorney never told him back then a plea deal was on the table.
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those are your headlines on the fox business network. get you back now to ashley and tracy. tracy: arthel neville, thank you very, very much. >> you're very welcome. tracy: wacky news day. shares of netflix are hitting a nearly two-year high today and one well-known investor's profit is now surpassing the billion dollar mark. ashley: how nice. tracy: gerri willis here off "the willis report". not too bad, huh? >> carl icahn, the boy knows how to make money. ashley: he certainly does. >> he bought netflix originally back in october because he wanted the company to sell itself. now he is quiet. and saying nothing at all because his stake risen in value to $1.35 billion. he bought 5.5 million shares way back last fall. he has done very well. his own son told him, dad, please don't sell the netflix. let me tell you why he was hand off. ashley: yeah. >> he saw house of cards. if you haven't seen house of cards, go see house of cards with kevin spacey. after he saw that and met
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with the ceo he was hands off. ashley: fantastic. great series. tracy: i didn't see "house" of cards? ashley: based on the british program which was fantastic. good for netflix. tracy: maybe his son is onto this movement towards -- >> right. tracy: i was just talking the other day to someone all three of my kids are sittings on the couch, the tv was not even on. they're all watching things from their different apparatus and netflix was one of them. >> that is absolutely right. that is the trend of the future. netflix is riding that intelligently right now. interestingly so they have started this "house of cards." they will redo "arrested development". ashley: one of my favorites. >> a lot of people loved that series. that will be popular. that will be hot. i have heard though they have do not have rights to "house of cards" on going. interesting to see the kinds of deals they make as they go forward. ashley: yeah. >> the interesting thing about the company because of the business they have been in renting dvds, they knew kevin spacey was hot and
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their audience would like to see him in something else. ashley: they got it right. tracy: they did. kevin spacey is the greatest. gerri willis on at 6:00 and 9:00 p.m. eastern. what will you be talking about? >> the irs issue and dissecting that some more. we'll get to the all-important story about ipads and the john. new tools and tricks for reading your ipad in the john. people are making product. >> like the bathroom, you're talking about? >> yes i am. the bathroom, the potty. talking about taking your ipad into the potty and what people are making for you that will help you do that and read it while you're --. ashley: good to know. tracy: have to keep it clean. >> we're doing stories that western civilization rely on. tracy: consumer reports, you need that kind of stuff. important information. ashley: somehow feels a little, yuk. i don't know why. tracy: it is important. >> i think it is for men personally. i don't know a single woman who has time for this. ashley: newspaper or magazine. let's move on, thank you very much, gerri, before i
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get you into big trouble. >> we're not getting in trouble. ashley: eurozone recession, let's dammen this on. the economy shrinking for the sixth straight quarter. gdp contracting .2 of a percent in the first quarter. that is worst than expected. it is the longest recession for the eurozone since record-keeping began all the way back to 1995. germany actually managed to post a slight gain. not as worse as expected but at least on the plus side. france meanwhile sliding back into recession. thank you, mr. hollande. markets not too concerned, don't care, major averages higher despite the dispointing data and they're trading at the highest level since 2008. check out the footcy and-footsie and german dacs. tracy: we have breaking news. irs apparently will be closed on may 24 this. nice long memorial day weekend for irs employees. four days, also throughout
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the summer. this is due to budget and sequester constraints. are june 14th, july 5th. seem to coincide with nice long weekends, july 22 inn nd and august 30th. the irs will be gone four days amidst the sequester. the record market is pushing higher yet again. coming up we'll hear from one big money manager who says this market is not normal. find out how he explains it next. ashley: it is abby-normal. first look at some winners and losers on the s&p 500. we'll be right back. friday night, buddy.
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ashley: we have 90 minutes until the close. stocks well off session highs. the dow is still up about 30 points. nicole petallides at the new york stock exchange. nicole? >> i was just taking a look at cisco. here's look how it's faring right now. it is one quarter of 1%. year-to-date it is a win -- winner up about 4%. on the closing bell we'll have update and bring the quarterly report to you. that will be obviously key. i was checking analysts who is hot on it and who is not. 37 analysts had buy ratings. that were 72% of the analysts that were surveyed, 10% had holds and 4% were at sells. look at berkshire hathaway. at the end of the day today warren buffett's company is expected to have a quarterly update on their u.s. stock portfolio. if you want to invest like buffett, stay tuned to the fox business network because
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we'll find out what companies where they're uping their stake and where they sold some. that is obviously key. back to you. ashley: you're absolutely right, nicole. thank you very much. tracy: the market is ignoring signs of economic weakness. the dow and s&p shrugging off early weakness to all-time highs again. many are warning of a pullback but our next guest says he isn't show sure he will see one. michael jones. riverfront investment group. michael, thank you for seeing us, the market is abby-normal in reference to "young frankenstein." that could be a good thing, isn't it? i said i learned from fundamental analysis. it is not working maybe, abby-normal is a good thing. >> with all apologies to mel brooks this is kind of an abby-normal environment. in a normal market after you've been running at a 40% annual pace which is what we've been doing since
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november, you would expect a pullback. you would expect a 8 t0 10% correction, come back towards the 200 day moving average, retrade one-third of advance all the stuff technical people who work for me always tell me is going to happen. the challenge in this environment is it is not normal. we have the fed printing $85 billion every month. we have the bank of japan pumping out 50 to 60 billion every month. and with all that liquidity coming into financial markets it has to go somewhere. it tends to go to the equity markets. it makes it much harder to sustain a pullback. and so while we should have a pullback, my actual expectation we may just chop sideways here for a while and kind of stall out and work out the overbought conditions that way. tracy: right. i think, you know, for a lot of traders, who, and investors who have been in this market for a long time, it is very hard to wrap your head around the notion that there might not be a pullback, right? things go up. they come down. well, just maybe, let's just say the fed does this right.
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pulls out slowly of this market, earnings get better. everything aligns in a perfect world, right? we could really dodge a pullback? >> oh, without question. for one thing on our models the market is still five to 10% undervalued. so there's no reason from a fundamental valuation perspective that we should necessarily have to go down. you also have something of a goldilocks environment developing in the economy. the reason why the market shrugged off some of the weaker data that got announced today, because it actually is hoping for a bit of softening in the data. what the market wants is a delicate balance between an economy growing fast enough from recovering housing, from recovering auto sectors, to offset the big dramatic headwinds that washington is inflicting on us through higher taxes and lower spending through the sequestration. tracy: right. >> what they want to see is a one 1/2, 2% type growth that keeps us far away from a recession but is not so robust that the fed is
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tempted to take away the punch bowl and stop pushing 85 billion into the market. tracy: right. but like any kid that read the nursery rhymes, what you want and what you get are two very different things. so that being said this market is going to keep going for a while for reasons many people don't get. where should you put your money? >> well, we're actually starting to think that if the market is going to at least stall out here, let's look at the areas that have been somewhat overlooked into the rising market. so this is a market that has been driven somewhat by lower volatility, higher quality, dividend oriented names. some of the higher volatility, lower quality sectors, like materials, like, some of the more cyclical industrials, they have sort of been left out of the parity. they're very cheap on our price matters framework which makes sense because to the extent that investors have wanted any stocks they have wanted the dividend, low volatility. so the neglected parts of the market we think can do a little catch-up move here. we're also looking overseas.
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we think the bad knaus out of europe is so bad it might be good because it will invest in europe that might be it. michael jones, thanks for being with us and playing along with mel brooks. ashley: got to love it. the investigation into "bloomberg news" snooping on its clients is going global. we'll have those details straight ahead. tracy: as we do every day at this time of day let's look at your 10 and 30-year treasurys as we head out to break. the dow is up about 25 points. we'll be right back.
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dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. >> i'm joe link kent with your fox business brief. attorney general eric holder just conceded he does not exactly when he recused himself from the doj secret probe into ap phone records. he is appearing in front of the house judiciary committee today. he says he didn't know about the interaction between the justice department and the associated press. he went on to say he was not involved in the decision on the seizure of ap's telephone logs. the doj secretly obtained ap phone records over the, -- analyst dick bove says jpmorgan ceo jamie dimon will step down if he is stripped of his chairman role during the next week's shareholder vote. they said the vote is too close to call. yesterday our charlie
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gasparino said jpmorgan is growing increasingly confident that dimon will retain both titles after the vote. dick will join charlie gasparino and liz claman at 3:00 p.m.
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tracy: only going from bad to worse here for "bloomberg news" and editor-in-chief matt winkler, totally in hot water. china's central bank is looking into potential confidentiality issue with the terminal snooping scandal. liz macdonald is here with emac's bottom line. china is involved now. >> we've been reporting this throughout the day as central bankers around the world are concerned about the snooping by "bloomberg news" reporters on the client usage of bloomberg terminals. now bloomberg is telling fox business they did not get specific stock data. you can't access specific trades. but the bank of england we reported yesterday is saying that the activities are
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reprehensible. let's get to what china is saying. china is essentially saying, look, it is concerned. they are aware of the situation. they are looking into the matter. china should be noted has $3.4 trillion in foreign reserves. any information that leaks into the market could sway trades either way for, or against china, the central bank there or for it. they're very uncomfortable. i'm hearing a lot of reaction from traders on wall street. they don't like the fact that they're spending 20 grand a year and having their, their information. >>ed on. -- snooped on. they are in productive dialogue with their clients. a lot of wall street shops have started their own electronic bond trading plat recalls to. they're not teaming up to pool liquidity yet of course. this is really important for bloomberg's business. one trader said to us they could balk, they could balk at providing pricing information to bloomberg.
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that won't, i mean bloomberg will still be the giant in this area along with thomson reuters, but the fact that that talk is starting because that is what bloomberg builds its business on and that's what led to the revealing 10,000 messages dumped on the internet accidentally by a bloomberg worker, showing details of the trade. that is what it does, it fine tunes its pricing data. if there is a blowback against that, that is another damaging hit to bloomberg's reputation, right? tracy: it is a little bit of the old pot calling the kettle black to have china calling -- >> that's a great point. that's a great point. tracy: that is what they do. >> that is exactly right but where do you see one shop, one-stop shopping like bloomberg has it? tracy: right. >> so-called dark pools. let's be clear or real what bloomberg does. their own database projects and their own news organization. you don't see all three of those at different wall street information shops, right? tracy: fair enough.
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you're right. >> so that's why it is a serious credibility blow to bloomberg. we're also hearing i have to report it, traders are saying look, we're really disgusted. we find the culture at bloomberg arrogant. we find it out of touch. they don't like the management of "bloomberg news". they don't like the way they have been treated. they don't feel like they have been given the respect they deserve and confidentiality and the privacy they deserve, as again, they don't want to be snooped on. that's it. this is a developing story. it is not going away. it is another leg. i don't know if we'll have our government probing with hearings or whatever. there is word the senate might look into it. not hearing that just yet that is a deaf it in. this is the story, the final point to be made, they feel like it has not been put to rest at bloomberg. there is not a investigation and person coming in. that is a problem. tracy: lizzie mack will be on this. ashley: thank you, emac. >> sure. ashley: more and more big-time sporting events are
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defecting to cable from traditional online broadcasters. you can add another one that may be about to go. dennis kneale has the details. dennis. >> hello, ashley. can anybody stop these guys? it's as of espn wants to own the world. the disney-owned juggernaut confirming to me it is in talks to raid the u.s. open tennis tournament from cbs where it has been a mainstay for 45 years. espn reportedly willing to pay $90 million a year for the u.s. open. that is 50% more than the $60 million that cbs now pays. a person at cbs sports declines to comment on whether the eye will blink at that price. now this would be on top of cb's agreement to let the finals of the march madness college basketball tournament switch over to its cable partner, time warner with tnt and tbs in 2016. and appear on cbo only every other year after. espn is arguably the most powerful cable channel a year. it rakes $10 billion a year in revenue.
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6 billion in fees paid by cable systems. 3 billion in ads. the dual revenue stream gives espn more scratch to buy sports rights than broadcasters like cbs has. espn's value is $40 billion, one-third of disney's entire market cap. espn fetches highest price cable systems pay for a channel, $5 a month per home, whether you're home watches it or not. but some 115 million people worldwide do watch some bit of espn every single week. it now has four branded channels, espn, espn 2, espn u for college and espn news plus an online channel, espn3. and new channel with the ncaa southeastern conference is coming out soon. our sibling, fox sports network one starts up in office. espn's chief says he is ready for the competition. ashley? ashley: i'm sure they are. ashley, thanks very much. tracy: we have it on every
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day, espn. ashley: more sports. tracy: quarter till. time for stocks as we do every 15 minutes. we head down to the new york stock exchange. john corpina joins us now. i have to ask you. the market keeps going and going, right? is all the nonsense in d.c. actually a good thing? keep washington out of the way. let us do what we got to do without them? market is off to the races. >> that can only last so long. intervention with d.c. and wall street has been there and it will continue to be there but it has to be on parity. we have to have the right goal and endgame in place. that is transparency to our market. we get a little bit of a gray area when you've got nonpractitioners trying to regulate markets that we have here that aren't fully educated on the actual mechanics what happens. on the endgame we're all on same side of the table trying to get to the same accomplishment trying to get investors more confident in the investing market. tracy: we're a long way from that, john. thank you very, very much.
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>> thank you, tracy. ashley: coming up google just unveiling a revamped google maps service. it will be interesting. the stock hitting by the way, 900 dal today. 901.45 to be exact. details are next. tracy: i love my google maps app, however you say that. as we head out to break let's take a look at some of the winners and losers on the nasdaq. dow is on the flat line. intuit up top at 2.54%. we'll be right back [ male announcer ] ve seen incredib things.
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ashley: google just unveiling a revamped google maps service at its developerses conference earlier today. the stock is topped 900 bucks a share, hitting all ail-time high. it unveiled a new subscription service called, all-access. what does all this mean for the tech giant? let's bring in eric kessler, analyst at raymond james. we're wrapping up the conference. i understand, larry page, cofounder and chief executive just took the stage but, aaron, what is your take on the conference so far and the, announcements that have been made? >> yes. so far pretty good. i don't want to say there is any big surprises yet. i would zare surprises all-access music offering though some have been rumored to definitely take on spotify in that space. less competition for pandora a paid service where pandora is more free. they talked about some new mapping features, making mapping more personalized and virtual gaming as well.
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google continues to activate a lot of users. they activated 900 million users on android. that is up significantly from 400 million users a year ago. clearly the android ecosystem continues to gain massive share. ashley: we haven't heard anything about google glass, is that right? >> yeah. i'm not sure we will today. maybe, maybe larry or sergei will comment on that but i haven't seen too much on google glass as yet today. but i guess stay tuned. ashley: do you think that is still a project they're interested in? i heard people just don't think it is very cool-looking. it had problems with privacy issues. businesses say they will not be allowed into the establishment. it has battery powered. sounds like there is a lot of project but you think they will stick to it? >> i think in the near term they will stick with it. google glass is still up to debate. the fact that people would leave their cell phones for google glass i think is hard to believe right now but you never know. maybe in 10 years maybe we'll be thinking why did we ever carry around a cell
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phone. ashley: they are reinventing google maps as they put it since they launched it into 2005. what are some of the cool new features of the maps service? >> what is maps is about continuing to integrate a lot of content google acquired. talk about restaurants insta great. reviews or travel or frommer's reviews. it is about integrating more content into the maps to personalize it more towards the user base. i think that will continue to be a feature google goes after, integrating more content to the end user. ashley: interesting. so shaking up the video game world perhaps by providing, i guess how would you put it a cross platform access? is this a big day, a big, big deal in the videogame world? >> we'll have to see. i think it is still early in terms of cross platform gaming today. a lot of people are still obviously playing games. it is still kind of a head-driven business. we'll have to see how much traction that gains but more interesting that the google
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is more into the virtual gaming space at this point. ashley: interesting. what else would you expect from this company? google is such a strong brand. is the music direction, is that something that's a good move for them? i know it was expected but do you think it makes sense? >> yeah, i think whether it is google, a lot of players, whether google, amazon, apple, they're all going after the digital media space and they all have plat foums. i think you will see facebook get into that space more as well. that is natural, what is interesting, i think google is actually making an attempt to go more into the e-commerce space given that is large part of their revenues is in e-commerce, maybe 40% of the revenues. to the more extent that people go to amazon that is negative for google. google will look to how to become a e-commerce part to a lot of 30 third party players. maybe they compete against amazon or epay, even more. ashley: the stock is hitting 901 bucks right now. more room to the upside you think?
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>> well, we think it can continue to move higher. mobile is doing well for them right now. i think clearly advertising growth is still strong. it is probably a partly a function of apple not doing as well so that money has to go somewhere. google the valuation is still reasonable here. it still has room to go. ashley: fascinating stuff. aaron kessler with raymond james out in san francisco. thanks so much for joining us. >> great, thank you. tracy: tell you what is fascinating, ash. ashley: yeah? tracy: burger king getting ready to unveil its summer menu including what it hopes to be a rival to the macrib. full disclosure i love the mcrib. the bk sandwich will be boneless like the mcrib and come with bread, buttered pickles. i hate pickles too. recommended price of the sandwich which $3.49. vary with markets. carolina barbecue sandwich, sweet potato fries and orry yo infused desserts.
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we're all about that. the menu starts tuesday into the summer. it has high hopes for the bk mcrib sandwich, i don't know, i'm a big fan of mickey d's mcrib. see how it compares. been around 32 years. ashley: don't ask how they make it. just enjoy it? tracy: do not think about what that actual meat is. many will argue it is not. just have it. ashley: like sausages don't ask how they were made. jamie dimon's fate hangs in the balance analysts are starting to weigh in on his future. coming up after fertty capital's dick bove make as prediction you won't belief. liz claman through the last hour of trading. "countdown to the closing bell" is next. my mantra? always go the extra mile. to treat my low testosterone, i did my research. my doctoand i went with axiron, the only underar low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18
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the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ ♪ attack of the activists, sony is the latest stock under pressure from a hedge fund heavy weight
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who is playing the squeaky wheel role. the stock after the complaint, should you be following his lead? we'll show you how to get in on this gig. losing more juice. how low can apple go as suppliers start to blame the company for their weak earnings? apple shares flashing red, but is that beacon a cell signal or screaming indicator to buy? we bring in both sides for a street fight. plus, would you relocate for a lower tax break? which cities have the lowest tax rate and why it might mean more jobs. "countdown to the closing bell" starts right now. >> i'm liz claman, the last hour of trading, but we have to back up to 40 minutes ago when the markets started to back off the climb that it experienced earlier today. we have the s&p just s